SMIT.BK WACC - Weighted Average Cost of Capital
The WACC of Sahamit Machinery PCL (SMIT.BK) is 7.3%.
| Range | Selected | |
| Cost of equity | 8.6% - 12.2% | 10.4% |
| Tax rate | 16.7% - 17.5% | 17.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 8.1% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.81 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 12.2% |
| Tax rate | 16.7% | 17.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 8.1% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SMIT.BK | Sahamit Machinery PCL | 0.92 | 0.31 | 0.18 |
| CSS.BK | Communication & System Solution PCL | 0.01 | 1.05 | 1.04 |
| GIFT.BK | Gratitude Infinite PCL | 0.2 | 1.63 | 1.39 |
| HARN.BK | Harn Engineering Solutions PCL | 0.09 | 0.05 | 0.05 |
| MGT.BK | Megachem Thailand PCL | 0.21 | 0.5 | 0.43 |
| PPM.BK | Porn Prom Metal PCL | 1.16 | 1.01 | 0.52 |
| SE.BK | SiamEast Solutions PCL | 0.05 | 1.16 | 1.11 |
| TCC.BK | Thai Capital Corporation PCL | 0.78 | 1.04 | 0.63 |
| THMUI.BK | Thai Mui Corporation PCL | 1.51 | 0.61 | 0.27 |
| UAC.BK | UAC Global PCL | 0.4 | 0.46 | 0.35 |
| UMS.BK | Unique Mining Services PCL | 0.79 | -0.21 | -0.13 |
| Low | High | |
| Unlevered beta | 0.35 | 0.52 |
| Relevered beta | 0.72 | 1.03 |
| Adjusted relevered beta | 0.81 | 1.02 |
SMIT.BK's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for SMIT.BK:
cost_of_equity (10.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.81) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.